Van Amburg , “ We ask two things : will it be profitable on its own and , will it enhance gaming ? When the answer to both questions is yes , we ’ re much more likely to move forward with the project . The bowling alley , movie theater and golf course are profitable , but they ’ re intended to bring people into the gaming facility .”
Deana Scott , CEO of Reno-based Raving Consulting , avoids any generalities about non-gaming in tribal resorts . “ In some markets , you can differentiate through additional amenities , but in others , it doesn ’ t make sense . I ’ ve been to properties with 100 games and a snack bar , and they ’ re doing just fine . There ’ s no reason to add a hotel or table games if the market doesn ’ t demand it .”
While each added amenity must be financially viable , the loss leaders or break-evens of old — affordable buffets , for example — aren ’ t out of line , if they support overall profitability and the guest experience .
“ The last thing you want to do is build a buffet thinking it ’ s going to make money , and it loses $ 100,000 ,” Scott says . “ But you can go into it saying , in our market , from a strategic point of view , a buffet is a marketing opportunity , and we ’ ll justify the cost as a marketing expense .
“ We ask two things : will ( an amenity ) be profitable on its own and will it enhance gaming ? When the answer to both questions is yes , we ’ re much more likely to move forward .”
— Kimberly Van Amburg , CEO , Casino Del Sol , Tucson , Arizona
“ In the early days , it made a lot of sense to have all these loss leaders , because gaming was such a big revenue driver . But in today ’ s competitive environment , a more mature , more demanding customer is looking for other reasons to make a trip . A lot of homework has to be done before throwing out the newest amenity . It has to fit into the overall mix , and you have to justify it financially .”
According to Saunooke , developers and marketers “ need to make sure we have each step of a customer ’ s journey considered , so the different amenities flow together naturally and create a higher value proposition for guests who are deciding where to spend their discretionary income . Specifically , Cherokee is creating that overall package for customers who are looking for a lot of different things to do on a trip , not just play the slot machines .”
“ We ’ re no longer in the business of putting a nickel in a machine and pulling a slot ,” according to Greg Sarris , tribal chairman of the Federated Indians of Graton Rancheria , who own the Graton Resort & Casino in Sonoma County , California . In a January interview with the San Jose Mercury News , Sarris said , “ Casinos have evolved to serve everyone , even people who don ’ t gamble . We want everyone to feel welcome here .”
42 TRIBAL GOVERNMENT GAMING 2020